China will encourage mergers and restructuring in the steel, coal and coal-fired power sectors this year as part of its campaign to mainstream heavy industry, the country's economic planner said in a statement on Thursday.
China will eliminate all "zombie firms" by forcing them to write off or merge with other companies, the National Development and Reform Commission (NDRC) said in the statement.
New steel-making capacity will be strictly banned in any form and the total capacity in key pollution-control areas, including the Beijing-Tianjin-Hebei region and Yangtze River Delta, will be controlled.
The NDRC also said it will carry out inspections on capacity cuts to prevent closed projects from reopening.